💥New Chapter 11 Bankruptcy Filing - Impac Mortgage Holdings, Inc.💥
REIT-turned-mortgage-lender-turned mortgage broker files to equitize senior lender
On April 26, 2026, Irvine, CA-based Impac Mortgage Holdings, Inc. ($IMPM)* and eleven affiliates (collectively, the “debtors”) filed prepackaged chapter 11 cases in the District of Delaware (Judge Goldblatt).
The debtors are a mortgage broker business that used to be a mortgage lender (exited in ‘23) that used to be a real estate investment trust (exited in ‘07). There are a few reasons for those business pivots: long-lived litigation with shareholders for one, the loss of the right to sell loans to Fannie Mae and Freddie Mac for another, but the most recent directional changes stem from COVID and then rising interest rates. The long-term effects on the business are straightforward; just look at headcount. It was 827 in ‘06, ⬇️ to 137 in’08, ⬇️ to 98 in ‘22, ⬇️ to … um … 18 as of filing.
But a failing business hasn’t deterred Hildene Re SPC, Ltd. (“Hildene”). Per CEO George Mangiaracina, Hildene purchased $2mm in secured bridge notes in January ‘26, extended a $20mm secured loan in May ‘24, the balance of which grew to ~$24mm as of the petition date, and through affiliates, owns ~$76.4mm in junior subordinated notes, which the debtors defaulted on in January ‘24 but have been under forbearance ever since.**
Obviously Hildene is the fulcrum here, so on April 22, 2026, it and the debtors entered into a restructuring support agreement (the “RSA”) that equitizes it and provides a fulsome deleveraging of the balance sheet, which entails:
📍A swap by Hildene of its debt for 100% of the equity in reorganized IMPM under a prepackaged chapter 11 plan (disclosure statement here), along with $300k for GUCs to split up pro rata (which the debtors peg at a ~24.4-100% recovery depending on the claims resolution process),***
📍A $5mm DIP to fund the bankruptcy, composed of $3mm in new money ($1.5mm interim) and a full roll-up of the $2mm of secured bridge notes on interim. The DIP bears interest at 12% and features a 4% commitment fee due on interim order,
📍A fast timeline: the RSA requires the plan to be confirmed by June 10, 2026 and go effective by June 25, 2026, which …
We mean, H-E-🏒-🏒 , ain’t nobody else coming for this “business.” Don’t believe us? Just check the DIP budget, which shows that the debtors expect to generate $162k in revenue during the first seven-weeks postpetition. Against a bleed of $884k in operating expenses.